CBD Could See Operations And Expansion Hindered By Tightening Credit Conditions

Brazil's largest retailer CBD has revealed that it spent less that it had planned on capital expansion in 2011. The firm had originally set an investment target of between BRL1.2bn and BRL1.4bn but actually invested less than BRL1bn, due to slowing consumer demand and more restrictive credit. This fits with our concerns about the market for credit in Brazil, whose rapid expansion is looking like it could be derailed by global headwinds. As well as affecting CBD's ability to expand, the market for credit also has a direct result on the firm's operational performance, following its decision to diversify into

To read the full article, please choose one of the following options: